1. Place a squab on a work surface, and with a sharp knife, remove wings and cut each wing into two pieces. Cut neck from body, and cut the body in half. Remove backbone. Split the squab in half through the breastbone. Cut off the first joint of each leg of the squab. Set all squab bones aside. Make a small slit in the excess skin of the breast. Tuck the end of the leg into this slit. Place the halved squabs in a shallow baking dish.
2. Add 1/4 cup olive oil, minced shallots, minced garlic, thyme, and orange strips to the baking dish, tossing to combine. Cover and let marinade in refrigerator for 24 hours.
3. In a large, heavy bottomed saucepan, heat remaining 1/4 cup olive oil over medium-high heat. When just beginning to smoke, add reserved squab bones, and cook for 3 to 4 minutes, stirring occasionally. Reduce heat to medium-low, and add 5 cloves unpeeled garlic and roughly chopped shallot. Cook, stirring occasionally, for 30 minutes.
4. Add sherry vinegar and honey, and stir to combine. Cook until pan is dry. Add orange juice, and cook until reduced and syrupy. Transfer to a small saucepan. Add veal stock, and reduce heat to low, simmering very slowly for 40 minutes. Remove from heat, and strain through a fine sieve, pushing hard on the solids. Whisk in 1 tablespoon olive oil, and season with salt and pepper.
5. Heat oven to 500 degrees. Remove squab from marinade. Season both sides of the squab with salt and pepper. Heat 1 tablespoon olive oil in a large heat-proof skillet over high heat. Add squab, skin side down, to the skillet. Cook for 1 minute, reduce heat to medium, and cook until squab is brown, about 3 minutes. Turn squab, and place skillet in oven; roast for 8 to 10 minutes for medium.
6. Remove from oven and serve with sauce and orange confit drizzled over squab.